SEBI board meeting: Key topics likely to be discussed today; all you need to know

By Team Asianet Newsable | First Published Sep 30, 2024, 1:24 PM IST

The Securities and Exchange Board of India (SEBI) is set to convene for a board meeting on Monday (September 30) in what promises to be a significant session. This development comes amid heightened attention following allegations raised by Hindenburg Research against SEBI Chairperson Madhabi Puri Buch regarding conflicts of interest and internal employee grievances.

The meeting is important as it follows a letter from nearly 300 SEBI employees to the Finance Ministry, highlighting concerns over a "toxic work culture" within the regulatory body. These issues are expected to be addressed during the meeting, as the conflict of interest accusations take center stage in what sources describe as a crucial discussion.

Tap to resize

Latest Videos

Tap to resize

Learn powerful financial tips from Warren Buffett’s success

One of the key topics on the agenda is the potential introduction of a new asset class designed to bridge the gap between mutual funds and portfolio management services (PMS). This new category aims to offer investors tailored investment options that fall between the two existing products, providing more flexibility and investment opportunities. Previously, the SEBI had floated this proposal in July, and it is expected to be further explored during the meeting.

This could significantly impact the investment landscape, offering products with a middle ground between the low-cost, passive mutual funds and the more customized and actively managed PMS offerings.

Another major issue on the table is a proposal to ease the norms surrounding rights issues. This change could streamline the capital-raising process for companies, enabling them to raise funds more smoothly. Additionally, SEBI is considering a proposal that would allow promoters to renounce their rights entitlement in favor of select investors during rights issues. This move is aimed at attracting more investment into the market by offering greater flexibility to promoters and companies.

'Bitter display of spite': Amit Shah slams Congress chief Mallikarjun Kharge over remarks on PM Modi

SEBI is also allegedly preparing to introduce new regulations under a framework known as "MF Lite." This will cater specifically to passive funds such as index funds and exchange-traded funds (ETFs), which track market indices or portfolios. These passive funds require less active management, translating to lower costs for investors.

For more reliable and latest news